Is the Board of Directors' Religion Related to Tax Avoidance? Empirical Evidence in South Korea

This study investigates the effect of directors' religious diversity on tax avoidance of firms. The board of directors plays an important role in supervising the management of the corporation. As such, the religious diversity of the board may affect corporate decisions and their implementation by the management. In this regard, this study analyzes the effect of the religious diversity of the directors on the level of tax avoidance. Results are presented as follows. First, the level of tax avoidance tends to be higher when the level of religious diversity among the board members is high. Second, tax avoidance level may be different depending on a CEO's religion, holding that the religions of board members are diverse. Third, the tax avoidance activity of a corporation is likely to be discouraged if the religions of board members are converged into a single religion. Overall, the results of this study provide an implication that religious factors influence the level of the firm's tax avoidance

Business · Corporation · Double taxation · Empirical evidence · Empirical research · Geography · On board · Political science · Religious diversity · Sociology · Tax avoidance · Corporate Finance and Governance · Corporate Taxation and Avoidance · Law · Taxation and Compliance Studies · Accounting · Finance

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